3. Risk analysis in capital budgeting Projects differ in risk, and risk analysis is a critical component of the eapital budgeting process. Consider the case of United Recyding Ine: United Recyding Inc. is one of the largest recyclers of glass and paper products in the United States. The company is looking into expanding into the cardboard recycling business. The company's CFO has performed a detailed analysis of the proposed expansion. The company's CFO used sophisticated software to analyze a large number of scenarios and generate estimated rates of return and risk indexes. Based on the information given, determine which of the statements is correct. The compsey's Cro conducted a sensitivity analysis to evaluate the project's financial model. The company's CFO used a Monte Cario simulation to evaluate the project's financal model. Evaluating risk is an important part of the capital budgeing process. Which of the following is measured by the variability of the project's expect returns? Stand-alone risk Market, or beta, risk Corporate, of within-firm, risk